BGN Entrepreneur

The hotel sector is not known for its resilience during a recession but Future Inns, a chain with hotels in south Wales and the west of England that targets business travelers, is bucking the trend.
Turnover last year grew from ￡7m to ￡11m. this was helped in part by the opening of a new venue but also due to some aggressive price cutting in a bid to win market share from competitors, says Del Brett, founder and managing directors.
With the market being more price sensitive this year, the only way to maintain volume was to grow market share. It’s had a dramatic effect. In Plymouth our occupancy went from under 60pc to more than 80pc.
Margins have remained steady. Even if the daily rate is lower, by having increased occupancy, the ancillary services such as restaurants and conference centers benefit. The secret is to offer a level of service one would get from a four-star hotel at three-star prices.

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